Mozambique rebels threaten Rio rail link
Rio Tinto is closely monitoring the situation in Mozambique, where opposition forces are threatening to block key transport routes, including one the mining giant uses to move coal, according to the Australian Financial Review.
The Australian government issued a travel warning for Mozambique last week after violent attacks in Sofala province, believed to have been carried out by ex-rebel Renamo opposition party members. Several government soldiers were killed.
Renamo has threatened to block the main road between Save and Muxungue, Sofala province, and the Sena rail line between Moatize in Tete province and the port of Beira.
Rio Tinto and Brazil’s Vale use the Sena line to transport coal from their operations in Moatize.
More job cuts for Barrick Gold
Canada’s Barrick Gold will announce more job cuts this week and potential mine closures in Western Australia as the falling gold price continues to heap pressure on local producers, according to the Australian Financial Review.
The world’s largest gold miner has already moved to trim its WA workforce, laying off nearly 60 people at the start of the month.
The company’s Australia Pacific vice-president, Mike Feehan, is due to front staff in Perth on Wednesday, at which time he is expected to reveal the extent of additional cost-saving measures.
Allmine collapse not great for Rex, Medusa
The collapse this week of Perth-based mining services company Allmine Group is hardly the news Rex Minerals is wanting to hear, according to the Australian Financial Review.
At the start of the month, Rex enlisted Allmine subsidiary Arccon and China Nonferrous Metal Industry (NFC) to build and part-fund its Hillside copper, iron ore and gold project on South Australia’s Yorke Peninsula.
Allmine slipping into administration has thrown a spanner in the works.
As part of the non-binding deal between the parties, NFC had agreed to facilitate debt funding for 70% of the project cost through major Chinese banks.
This provided heart to investors who had been concerned about how a company of Rex’s size would find the $US800â€â€° million needed to build Hillside. On the day of the announcement, Rex shares gained 13.5c, or 54%, to finish at 38.5c.
